Comparing Toronto Dominion Bank (NYSE:TD) & Raiffeisen Bank International (OTCMKTS:RAIFY)

Raiffeisen Bank International (OTCMKTS:RAIFY) and Toronto Dominion Bank (NYSE:TD) are both large-cap finance companies, but which is the better stock? We will compare the two companies based on the strength of their risk, valuation, dividends, analyst recommendations, profitability, institutional ownership and earnings.

Analyst Ratings

This is a summary of recent ratings and recommmendations for Raiffeisen Bank International and Toronto Dominion Bank, as provided by MarketBeat.com.

	Sell Ratings	Hold Ratings	Buy Ratings	Strong Buy Ratings	Rating Score
Raiffeisen Bank International	0	0	0	1	4.00
Toronto Dominion Bank	1	4	3	0	2.25

Toronto Dominion Bank has a consensus price target of $93.00, indicating a potential upside of 19.46%. Given Toronto Dominion Bank’s higher possible upside, analysts clearly believe Toronto Dominion Bank is more favorable than Raiffeisen Bank International.

Institutional and Insider Ownership

52.4% of Toronto Dominion Bank shares are owned by institutional investors. 0.1% of Toronto Dominion Bank shares are owned by company insiders. Strong institutional ownership is an indication that large money managers, endowments and hedge funds believe a company will outperform the market over the long term.

Dividends

Raiffeisen Bank International pays an annual dividend of $0.18 per share and has a dividend yield of 2.1%. Toronto Dominion Bank pays an annual dividend of $3.09 per share and has a dividend yield of 4.0%. Raiffeisen Bank International pays out 9.7% of its earnings in the form of a dividend. Toronto Dominion Bank pays out 36.1% of its earnings in the form of a dividend. Both companies have healthy payout ratios and should be able to cover their dividend payments with earnings for the next several years. Toronto Dominion Bank has raised its dividend for 12 consecutive years. Toronto Dominion Bank is clearly the better dividend stock, given its higher yield and longer track record of dividend growth.

Volatility & Risk

Raiffeisen Bank International has a beta of 1.41, meaning that its stock price is 41% more volatile than the S&P 500. Comparatively, Toronto Dominion Bank has a beta of 0.81, meaning that its stock price is 19% less volatile than the S&P 500.

Profitability

This table compares Raiffeisen Bank International and Toronto Dominion Bank’s net margins, return on equity and return on assets.

	Net Margins	Return on Equity	Return on Assets
Raiffeisen Bank International	-0.56%	2.89%	0.30%
Toronto Dominion Bank	16.40%	13.59%	0.73%

Earnings and Valuation

This table compares Raiffeisen Bank International and Toronto Dominion Bank”s revenue, earnings per share and valuation.

	Gross Revenue	Price/Sales Ratio	Net Income	Earnings Per Share	Price/Earnings Ratio
Raiffeisen Bank International	$15.33 billion	0.73	$1.25 billion	$1.86	4.54
Toronto Dominion Bank	$88.27 billion	1.51	$6.50 billion	$8.56	9.09

Toronto Dominion Bank has higher revenue and earnings than Raiffeisen Bank International. Raiffeisen Bank International is trading at a lower price-to-earnings ratio than Toronto Dominion Bank, indicating that it is currently the more affordable of the two stocks.

Summary

Toronto Dominion Bank beats Raiffeisen Bank International on 14 of the 18 factors compared between the two stocks.

About Raiffeisen Bank International

Raiffeisen Bank International AG, together with its subsidiaries, offers banking services to corporate, private customers, and institutional customers. The company offers cash management, cross border accounts, electronic banking, payments solutions, sustainable and subsidized financing, leveraged and acquisition financing, project and structured financing, real estate financing, leasing, factoring, trade and export financing, investment banking, investing, hedging, and investor services to its institutional clients and corporate customers in agri food and beverage, automotive, construction and building materials, food and beverage, healthcare and pharmaceuticals, oil and gas, packaging, real estate, retail, technology, telecom, and utilities industries. It also provides retail and private banking services, including deposits, loans, wealth management, and advisory services to retail customers and small and medium-sized enterprises. In addition, the company offers clearing, reporting, settlement, guarantees, letters of credit, fund administration, acceptances, brokerage, asset management, and custody services; and investment banking services, including asset based finance, fund finance and alternatives investments, loan syndication, mergers and acquisitions advisory, and debt and equity capital markets services. It operates through a network of business outlets in Central, Southeastern, and Eastern Europe, as well as Austria, Czech Republic, Hungary, Poland, and Slovakia. Raiffeisen Bank International AG was founded in 1886 and is based in Vienna, Austria.

About Toronto Dominion Bank

The Toronto-Dominion Bank, together with its subsidiaries, provides various financial products and services in Canada, the United States, and internationally. It operates through four segments: Canadian Personal and Commercial Banking, U.S. Retail, Wealth Management and Insurance, and Wholesale Banking. The company offers personal deposits, such as chequing, savings, and investment products; financing, investment, cash management, international trade, and day-to-day banking services to businesses; and financing options to customers at point of sale for automotive and recreational vehicle purchases. It also provides credit cards and payments; real estate secured lending, auto finance, and consumer lending services; point-of-sale payment solutions for large and small businesses; wealth and asset management products, and advice to retail and institutional clients through direct investing, advice-based, and asset management businesses; and property and casualty insurance, as well as life and health insurance products. The company also provides capital markets, and corporate and investment banking products and services, including underwriting and distribution of new debt and equity issues; advice on strategic acquisitions and divestitures; and trading, funding, and investment services to corporations, governments, and institutions. It offers its products and services under the TD Bank and America's Most Convenient Bank brand names. The Toronto-Dominion Bank was founded in 1855 and is headquartered in Toronto, Canada.